Factbox: How would a ChemChina-Sinochem merger look?

Reuters Staff

4 Min Read

BEIJING (Reuters) - Chinese state-owned chemical companies Sinochem Group and ChemChina are in discussions about a tie-up to create a global chemical, oil and agricultural giant with almost $100 billion in annual revenue, three sources familiar with the matter said.

Measured by revenue and profits, Sinochem is much larger than its rival ChemChina, which is finalizing a $43 billion takeover of Swiss pesticides and seed group Syngenta. That deal would be China’s largest-ever foreign investment.

SINOCHEM:

One of China’s four state oil companies, the nation’s biggest fertilizer, seed and agrochemicals company and a major chemical service company. It also has real estate and non-banking financial service businesses.

Energy was one of its largest businesses, with revenue of 25.4 billion yuan ($3.8 billion) last year.

Controls 240,000-barrel-per-day Quanzhou refinery and owns a minority stake at the 50,000-bpd independent Hongrun Petrochemical Corp; Sinochem plans to expand into petrochemicals at its Quanzhou plant by adding a large ethylene complex.

Owns production oil and gas production assets in Brazil, Colombia and the Middle East, and shale field in Texas.